What is the reason for global poverty

povertyThe vicious circle of poverty


Debt plays a major role in this context. A heavily indebted state needs a lot of money to pay off its debts. Then there is not enough left to invest in the economy. And the state becomes even more impoverished.

The economy is also dominated by industrialized nations. The needs of developing countries receive little attention on the world market. The rising prices of food in the international market pose difficulties for poor people. You can no longer afford groceries. The cycle of poverty starts all over again.

Health: The third wheel in the vicious circle of poverty

The third wheel in the cycle of poverty is health. Extremely poor people often lack access to adequate nutrition. Undernourished or malnourished people are more prone to disease - especially children and the elderly. The body is weakened. It lacks vitamins and minerals to defend itself against viruses.

Those who are too weak to work due to hunger and illness cannot earn any money. Often people again lack the means to afford medication or basic medical care. And the vicious circle of poverty continues.

The causes and consequences of poverty are mutually dependent

Income, health and the economy work together as a dangerous mechanism in the vicious circle of poverty. One gear meshes with the other. In most cases, therefore, people cannot escape extreme poverty on their own.

Source: bpb, armut.de, World Bank (January 2018)